Compass reports strong second half 2021 fiscal results

Compass Group PLC, the British parent of Compass Group North America, the largest contract management firm in the U.S., has reported a 6.3% organic revenue decline for its 2021 fiscal year from fiscal 2020. That total included gains of 36.4% and 32.9% in the third and fourth quarters, respectively, covering the months of April through September 2021 (the fiscal year ended Sept. 30) after steep declines of 33.7% and 26.8% in the first and second quarters from the pre-pandemic October 2020-March 2021 period in fiscal 2020.

For the North American unit, full year organic revenue declined by 6.7%, with revenues sitting at around 76% of 2019 revenue, though the fourth quarter was around 90%. Among individual markets in North America, the Healthcare/Senior Living unit performed best, posting a 1% gain, while Education dropped around 13%, Sports/Leisure declined around 8% and Business & Industry saw a 30% plunge. The company says Healthcare/Senior Living and Sports/Leisure also realized double-digit new business growth and continued high retention rates at 96.4%. “Of the top 10 new business wins by value, eight were from first time outsourcing,” it added.

The Sports & Leisure business also performed well in the second half of the year, benefiting from improved attendance, particularly of outdoor sports events, with strong per capita spend, while Education saw strong reopening numbers following the summer break and high on campus spend. Business & Industry, which is weighted towards business (i.e., white collar facilities), continued to be significantly impacted by the pandemic with a slow recovery and gradual return to offices.

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For the group as a whole, covering worldwide operations, Healthcare/Senior Living actually saw a 6.9% organic revenue increase for the year, posting gains in all four quarters, while the Defense/Offshore/Remote unit—which is only a minor part of North American operations but makes up nearly half of the business outside North America and Europe—grew 8.3%. Otherwise, Education (-3.7%), Sports/Leisure (-6.7%) and Business/Industry (-21%) all saw organic declines for the year, but all three had strong growth in the third and fourth quarters, led by Sports/Leisure, which rocketed up 412.6% and 334.6% in the third and fourth quarters, respectively.

The company says it expects fiscal 2022 revenue growth of between 20% and 25%.